Shares of Swiggy saw a decline of over 2% during Monday's trading session, marking a continued downturn for the second consecutive day. The negative market sentiment follows reports that the Food Safety and Standards Authority of India (FSSAI) has initiated formal inquiries into the company's quick-commerce platform, Swiggy Instamart.
The regulatory body has issued nine separate notices citing alleged food safety violations stemming from consumer grievances. Authorities have demanded a comprehensive report detailing Swiggy's compliance measures and supporting documentation to address these quality concerns.
The FSSAI has issued a stern warning, indicating that the delivery service could face potential legal repercussions if it fails to provide a satisfactory explanation or address the highlighted violations. Investors remain cautious as the firm navigates this regulatory hurdle.
